If you own a rental home inside Salt Lake City limits, the city expects you to hold a business license for it. That surprises a lot of owners, especially accidental landlords renting out a single house or condo. What surprises them even more is how much the per-unit licensing fee drops when they join the city's Landlord/Tenant Initiative, better known as the Good Landlord Program.
We teach Good Landlord classes to owners and property managers across Utah, and it's one of the most common topics new clients ask us about. Here's how the program works, what it requires, and how to decide whether it makes sense for your rental.
Key Takeaways
Every rental property within Salt Lake City limits needs a valid business license, including single-family homes and condos.
Owners pay a one-time base fee plus a per-unit fee, and Good Landlord participation cuts the per-unit fee from $342 to $35.
Participants must complete approved training within six months of applying and take a four-hour refresher every three years.
Small owner-occupied properties may qualify for an exemption from per-unit fees.
Many other Utah cities run their own versions of the program with different rules and fees.
What Is the Good Landlord Program?
Salt Lake City officially calls it the Landlord/Tenant Initiative. The idea behind it is simple. Cities have found that rental properties can generate more police, fire, and code enforcement calls than owner-occupied homes, and they charge a higher "disproportionate" licensing fee to cover that cost. Owners who agree to follow sound management practices and complete training receive a steep discount on that fee.
In other words, the program rewards owners for running their rentals well. Better screening, clear leases, consistent maintenance, and a quick response to problems tend to reduce calls for service, and the city passes some of that savings back to responsible landlords.
Do You Need a Rental Business License in Salt Lake City?
Yes. According to Salt Lake City's Landlord/Tenant program FAQ, every rental property within the city's corporate limits must maintain a valid, unexpired business license. That includes single-family homes, duplexes, condos, and larger multifamily buildings.
The license is required whether or not you join the Good Landlord Program. Participation is optional. The license is not.
There are a few exceptions worth knowing about:
Small owner-occupied properties: Properties with four units or fewer where the owner lives on site may be exempt from per-unit fees and program participation. Ownership and residency must be verifiable.
Family tenancies: If units are occupied by direct family members and aren't available for rent, the owner may be able to file an affidavit with Business Licensing.
Nonprofits: Nonprofit owners skip the base fee but still pay the per-unit fee at either the participating or nonparticipating rate.
If your rental is in Sandy, Draper, Murray, West Jordan, or another nearby city, the rules are different. Check with that city's business licensing office before you assume Salt Lake City's requirements apply.
How Much Can You Save?
The savings are the main reason most owners enroll. Salt Lake City currently charges a $193 base fee, which is paid once no matter how many rentals you own, plus a per-unit fee of $342. Good Landlord participants pay $35 per unit instead.
Here's what that looks like in practice:
One single-family rental: $535 per year without the program, or $228 with it.
A triplex: $1,219 per year without the program, or $298 with it.
Ten units: $3,613 per year without the program, or $543 with it.
The gap grows with every unit you add. For owners with more than one property, the training pays for itself in the first year and keeps paying every year after.
What Does the Program Require?
Salt Lake City's requirements have become more flexible over the years, but owners still need to meet a few core commitments.
Complete Approved Landlord Training
Participants must finish an approved Good Landlord training course no later than six months after applying. After that, the city requires a four-hour refresher course every three years. If you've already completed approved Good Landlord training through another Utah city, Salt Lake City will accept a current certificate.
The training covers practical topics like fair housing, tenant screening, lease agreements, crime prevention, and the eviction process. Even experienced owners usually walk away with something useful.
Apply at Renewal
Owners apply for participation when their business license comes up for renewal. The city includes Landlord/Tenant program information with renewal notices.
Follow Sound Management Practices
The city no longer requires a specific lease addendum, and it encourages but does not require criminal and credit background checks. That said, those practices are still the backbone of responsible management. A thorough tenant screening process and a well-written lease protect you far more than they protect the city.
Owners who keep a clean history can continue participating and receiving the discount year after year.
Is the Good Landlord Program Worth It?
For almost every Salt Lake City rental owner, the answer is yes. A few hours of training in exchange for a fee cut of more than 89% per unit is hard to beat. The training itself also helps owners avoid expensive problems, which is why we encourage new landlords to take it even when they plan to self-manage. Many of the costly property management mistakes we see come from owners who simply never learned the rules.
The main reason an owner might skip the program is if they qualify for the owner-occupied exemption. In that case, the per-unit fee may not apply at all.
Good Landlord Programs in Other Utah Cities
Salt Lake City isn't alone. Cities across the Wasatch Front, including South Salt Lake and North Salt Lake, run their own Good Landlord programs. Requirements vary from city to city. Some only require licenses for owners with a certain number of units, some require training every two years instead of three, and fee structures differ widely.
If you own rentals in more than one city, keep a simple tracker with each license's renewal date, training expiration, and fee schedule. For more ideas on staying organized, our landlord tips and tricks cover the habits that keep self-managing owners out of trouble.
Frequently Asked Questions About the Salt Lake City Good Landlord Program
Do I need a business license to rent out one house in Salt Lake City?
Yes. All rental properties within Salt Lake City limits need a valid business license, including single-family homes and condos.
How long is Good Landlord training valid in Salt Lake City?
Initial training must be completed within six months of applying, and participants must take a four-hour refresher course every three years.
Will Salt Lake City accept Good Landlord training from another city?
Yes. The city accepts approved Good Landlord training from other Utah cities as long as you provide a valid, current certificate with your application.
Is the Good Landlord Program mandatory?
No. Participation is voluntary, but the business license itself is required. Joining the program reduces the per-unit licensing fee.
Lower Fees and Fewer Headaches for Salt Lake City Landlords
The Good Landlord Program is one of the easiest ways for Salt Lake City rental owners to cut annual costs while sharpening their management skills. Get your business license in order, complete approved training, apply at renewal, and keep good records to stay in the program.
If tracking licenses, renewals, training deadlines, and city requirements sounds like more than you want to take on, we can help. Explore our Salt Lake City property management services and let our team handle compliance so you can keep life simple.